Thursday, April 17, 2014

GbpUsd ABC bearish correction?

I expect an ABC bearish correction on this pair...This pair has given me 220 pips since last week.

I see a deep cab pattern has formed already, so I expect market reaction to be bearish. 

A picture speaks louder than a thousand words. Check the chart below

The wave 5 could be completed because of the following parameters:

1. 1.618 fibo extension of wave 1 from wave 2

2. 1.13 deep retracement of the prior downward move thereby forming a deep crab pattern

3. A resistance trendline

4. A pin bar forming on the daily chart

I expect this bearish move (if it happens) to be an ABC correction which could go deep to 50% ret (at 1.6700), 61.8%ret (at 1.6650) or 1.6600 ofthe upward move from 1.6460.

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